June 24, 2026
 

Thailand's TFG commissions Vietnam feed mill and studies poultry entry as domestic pig prices recover

TFG's Vietnam operations are expanding beyond pig farming into feed production to cut costs, with a chicken business under study, as Thai farm-gate pig prices show early signs of recovery from April-May lows.

Thai agribusiness group TFG has commissioned a feed mill in Vietnam as part of a move toward fully integrated pig farming operations in the country, and is studying entry into Vietnam's poultry sector, according to a Krungsri Securities research note published on 22 June.

The Vietnam operations represent one of three key growth drivers identified for TFG over 2026-2027, alongside domestic retail network expansion and a structural shift away from live pig sales toward processed pork through its own retail channels. The broker noted that Vietnam's livestock market is larger and faster-growing than Thailand's, providing a more favourable backdrop for TFG's integrated expansion strategy.

Domestically, TFG's farm-gate pig prices hit a low of THB55.50 per kilogramme in April-May 2026 before beginning to recover, reaching THB63.50 per kilogramme by late June — up 14% from the trough — with piglet prices rising 33% over the same two-week period. The broker attributed the improvement to independent farmers reducing supply under loss-making conditions and said the recovery supports a second-half earnings rebound.

TFG's retail network has expanded to 690 branches, accounting for 46% of first-quarter 2026 sales, with a target of 1,050 branches by 2027. The company has reduced live pig sales from 58% to 23% of pig revenue, channelling more volume through retail as processed cuts, which the broker said lifted pig gross profit margins to 51% in the first quarter despite weak farm-gate prices.

TFG has locked in feed costs at low levels through to 2027, providing a cost buffer as livestock prices recover. Full-year 2026 core profit is forecast at THB8,048 million (approximately US$221.2 million), up 2.3% year-on-year, on revenue of THB80,395 million (approximately US$2.21 billion), before accelerating to THB10,069 million in 2027.

- Krungsri Securities / HoonVision